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Europe Daily Bulletin No. 9472

20 July 2007
Contents Publication in full By article 30 / 39
GENERAL NEWS / (eu) eu/court of justice
Intergroup financial transfers may be taxed by member state of origin

Luxembourg, 19/07/2007 (Agence Europe) - On Wednesday 18 July, the Court ruled that Finland may tax a financial transfer carried out by a Finnish company to its parent company abroad. This confirms the caselaw established by the Marks & Spencer case (C-446/03) and others. It must be noted, however, that freedom of establishment is in fact restricted by such a taxation regime. If a profitable subsidiary wishes to come to the financial assistance of a subsidiary in financial difficulty, the...

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